Nigeria’s external reserves have experienced a significant decline of $841.75 million between July and September 2023, according to data from the Central Bank of Nigeria (CBN).
The CBN’s report on the movement of external reserves reveals that these reserves, which amounted to $34.07 billion on July 7, 2023, decreased to $33.23 billion by October 5, 2023.
This latest drop follows a previous decrease of $2.85 billion in the first half of 2023, attributed to external debt financing and other economic challenges.
The CBN’s Monetary Policy Committee members expressed concerns over weak accretion to external reserves and persistent foreign exchange demand pressures as of July.
They highlighted the importance of achieving stability in the foreign exchange market for long-term price stability.
Former acting Governor of the CBN, Folashodun Shonubi, highlighted that the removal of subsidies and increased government revenue from crude oil receipts could positively impact price stability, exchange rates, and inflation moderation in the medium term.
These developments emphasize the need for Nigeria to address its economic challenges and bolster its external reserves to ensure a more stable and resilient financial future.
